NOMINAL ACCOUNTS

 

Accounts relating to income, revenue, gain expenses and losses are termed as nominal accounts. These accounts are also known as fictitious accounts as they do not represent any tangible asset. A separate account is maintained for each head or expense or loss and gain or income. Wages account, Rent account Commission account. Interest received account are some examples of nominal account 

The rule for Nominal accounts is: Debit all expenses and losses

                                                       Credit all incomes and losses es and gains